water grid and markets will help us realise the greatest benefit from our
valuable water resources.
Victoria seeks to
get the best from our water grid and markets.
- Develop a grid oversight
- Explore options for future
additions to the water grid
- Improve the effectiveness of
- Increase water market
transparency and information sharing
- Develop the water market in
south central Victoria
- Improve trading rules in
- Develop trading rules in
other water systems
water grid works much like our road network, connecting sources, such as dams,
reservoirs and the desalination plant via infrastructure including pipes and
pumps and natural elements like rivers. Water markets allow users to move water
in connected systems to where it is most needed.
regional and state-wide networks operate independently as well as together to
allow water to be moved from where it is captured and stored to where it is
water markets allow farmers, the Victorian Environmental Water Holder and water
corporations to buy and sell water entitlements and seasonal allocations, so
they can manage their own risk according to their willingness to pay. The water
markets allow us to share water security benefits in ways that are equitable,
responsive and transparent.
must get the most value from all sources of water and existing infrastructure.
This becomes all the more important as we deal with the challenges of climate
change and population growth, with less water available. New investment in the
water grid may also be necessary.
an opportunity to improve the way we use the infrastructure and to continue to
build effective and efficient ways for buying and selling water.
enhanced connectivity of the grid allows areas outside Melbourne to benefit
from the increased water security provided by the desalination plant. We have
an opportunity to the share the benefits of this water security and to build
drought resilience. All benefits, costs and risks need to be recognised and
water around the grid or transacting water trades must not result in adverse
impacts on the environment or third parties. This is a challenge for greater
use of the grid and water markets.
Victorian Water Register provides water users with essential information about
water entitlements, seasonal allocations, trade and transfers. The water
register is the authoritative record of water entitlements, and facilitates the
transactions that underpin Victoria's water markets.
maintenance and development of the register is critical to enable government to
fulfil its statutory obligations, for supporting market development and water
corporation strategic planning and for providing information to water resource
managers and the public.
government will continually improve water market information and reduce system
red tape, including that associated with the Victorian Water Register. This
includes making transactions simpler, quicker and cheaper for users, and better
integrating with water corporation operations to meet the levels of service
expected by water corporations and water market participants.
new water markets
new water initiative trial will launch in Victoria in 2017, with a five-year
trial to develop a new water market in south central Victoria which includes
rapidly growing regional centres such as Geelong. The trial market builds on
the increased connectivity of the grid over the last decade and access to water
from the Victoria Desalination Project. It will provide significant
opportunities to trade water and delay or avoid costly additions to the water
grid augmentations. It could also help to further free up water trading within
the southern irrigation districts and water for environmental outcomes. The
trial will need to balance the trade opportunities with the need for water
security during long periods of drought.
central market trial will be staged and collaborative to build understanding
and confidence. The government will work closely with stakeholders to define
institutional arrangements and governance. The trial will initially focus on
more clearly understanding trade opportunities and barriers. It will be
important to build understanding of the grid through improved system
information and modelling.